RED 5 Ltd (ASX:RED) has confirmed that its King Of The Hills gold development in Western Australia is progressing within budget and on schedule to deliver first gold production in the June Quarter 2022.
Highlights of recent activity at KOTH includes:
- All critical equipment for the SAG mill, gyratory crusher, conveyors and power station is now in place.
- KOTH Project over 83% complete at the end of the December Quarter.
- 60,000 metres of underground and open pit grade control drilling completed during the Quarter.
- Mining contractor Macmahon has commenced mobilising on site, ready to start mining in February 2022.
- Macmahon recruitment activities are progressing to plan.
“I’m pleased to report that we finished 2021 at a frenetic pace, with the workstreams at King of the Hills progressing on schedule and within budget to deliver first production by the June Quarter 2022,” Managing Director, Mark Williams, said.
“We now have all elements of the SAG mill largely in place, the stacker conveyer erected and the assembly of the gyratory crusher nearing completion.
“Red 5’s decision to fast track development of the KOTH Project back in 2020 is paying off, with the company in the unique position of being ahead of the curve in terms of the cost inflation currently being experienced across the resources sector.
“This is also a credit to the outstanding work of our in-house construction team, led by Warren King, and our contracting partners, MACA Interquip. We are working together collaboratively to ensure we complete the final few months of construction activity in the same vein as we started and deliver this Project on time and within budget.
“Our operations team is working closely with our mining contractor, Macmahon, with equipment and crews now mobilising on site ready to start mining in advance of the commissioning of the plant. Macmahon’s recruitment remains on plan, and our first 13-week mining schedule has been developed and is ready to be implemented.
“In the meantime, Darlot production was 16,519 ounces of gold for the Quarter at an AISC of A$2,556 per ounce. Expectations are that production from Darlot and Great Western will be stronger in the second half of FY22 and in due course, will realise the cost savings of future ore processing at the low-cost KOTH mill as part of our KOTH Hub Strategy.
“Our exploration team has also continued to deliver positive results, with assays from the Cable and Mission deposits – both located approximately 10km north of Darlot – upgrading the potential of this area. We are now integrating these latest assays into an updated geological model for the Cable and Mission deposits ahead of the delivery of a maiden JORC 2012 Mineral Resource estimate.
“It was encouraging also to see strong results from the initial phase of underground drilling at Great Western. Results confirm that the Resource continues at depth, with positive implications for a potential future transition to underground mining.”
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